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  • USA: Trader Joe’s introduces own Private Label brand dessert beers for the fall

    Trader Joe’s (owned by German Discount Retail Chain Aldi Nord) has some unique Private Label (PL) dessert beers brewing for the colder months ahead, one of the few categories in-store where they tend to lean on branded breweries to stock the shelf. The Trader Joe's (TJ's) product developer, Catherine, mentioned that Trader Joe's will be launching a barrel-aged beer later in the year and remarked on a recent expansion of its store PL brand Shell House Hard Seltzer line. Seltzers are extremely popular right now. People love them because they're lower in carbs, lower in calories than beer. TJ's Seltzer also happen to be gluten free because they're using sugar to create the alcohol instead of grains. And the two flavors that TJ's added are a raspberry as well as a lime. TJ's has been working for two years on its PL dessert beer called Cookie Butter Beer, a beverage that they say fits nicely since the store prides itself on its TJ's Speculoos Cookie Butter. The beer is slated for September and will be joined later by other TJ's dessert beers Coffee Peanut Butter Cup, Ginger Bread Spiced Stout, Toasty Cookie Spice Cider, and the return of last year’s own PL brand Howling Gourd Pumpkin Ale beer and Gourd Tree Pumpkin Cider. Click on image for more:

  • Spain: DIA reunions 1,000 suppliers to become the largest proximity retailer

    Discount Retail Chain DIA (owned by Russian LetterOne) brought together more than 1,000 suppliers, both branded and Private Label manufacturers, in a Video Conference with the company's management team, in order to become the largest proximity retailer in Spain. Under the motto 'Cambiar contigo' ('Change with you'), the Discount Retail Chain has presented its main strategic lines, which respond to the company's desire to build `long-lasting and stable relationships that are beneficial to all.` DIA's objective is to become the largest local retailer, offering a value proposition that combines the physical store and the 'online' store, with 'attractive' offers and an efficient operationing process that ensure a proper functioning of the Discount Retail Chain business model. DIA's new commercial offer is based on product innovations, an optimized assortment, local products, Private and OE labels and more competitive promotions. The goals is to work together to achieve exclusive promotions that are interesting for suppliers, customers and DIA. Click on image for more:

  • UK: Aldi aims to cut plastics in packaging by half by 2025

    Discount Retail Chain Aldi United Kingdom and Ireland have stepped up their sustainability goals to include a reduction of the volume of plastic packaging it uses by half by 2025. This reduction is equal to removing more than 2 billion single items of plastic. The latest target was set July 9, and is an addition to the retailer’s overall strategy to ensure that all own brand products are recyclable, reusable or compostable by 2022. Aldi U.S. has similar sustainability goals, including a pledge to make 100% of its private label packaging to be reusable, recyclable or compostable by 2025, while cutting packing materials for those products by 15% over the same period. Aldi U.K. has had a plastic-reduction strategy in place but the new target to cut by half and remove 74,000 metric tons of plastic packaging or 2.2 billion pieces of plastic is an enhanced measure. Since 2018, the retailer has removed more than 6,000 metric tons of plastic and replaced more than 3,200 tonnes of non-recyclable material with an alternative that is recyclable. Click on image for more:

  • Poland: How is Lidl progressing?

    Discount Retail Chain Lidl Poland (owned by Scharz Group) currently has 723 branches. Its store no. 700 opened on October 24, 2019, which means that in eight months the chain opened 23 stores. The last store opened on June 4 2020 in Płock. Lidl launched its third store there. The largest Discount Retail competitors of Lidl, i.e. Aldi (142 stores), Netto (386 stores) and Biedronka (about 3010 stores) have a total of about 3540 stores. Lidl employs approx. 20 thousand in Poland. The company does not reveal its expansion plans. We only know the data from last year. At the end of February 2019, Lidl had 673 stores in Poland, and its market share was 7.2%. Over the past 2 financial years, the company has opened 64 new stores. Sales of food products from Polish producers constitute over 70% of the company's turnover. Thanks to this cooperation, in the financial year 2019, the value of Lidl Private Label brand products exported abroad within the Lidl chain by 241 Polish suppliers to 25 European countries amounted to $0.8 billion. For several years, Lidl has been opening approximately 30-40 of its stores in Poland annually. According to the financial statements, Lidl Polska's total revenues from March 2018 to the end of February 2019 amounted to $4.6 billion, which compared to $4.1 billion a year earlier means an increase of 14.2%. Click on image for more:

  • Spain: Aldi's milk, 100% local

    Discount Retail Chain Aldi Spain sells its milk 100% of national Spanish origin and all Private Label dairy products are packaged with sustainable, recyclable and environmentally friendly materials. Currently, Aldi has 15 PL milk items in its assortment under the `Milsani` brands, in its dairy category, and `Gutbio`, for organic milks. After the launch a year ago, of the first aluminium-free packaging on the market for `Milsani's` uncooled dairy products, now all `GutBio` brand organic milk will also have a new packaging design. It is the Edge Biobased model of carbon certified Carbon Trust and made with 89% plant-based material, which emits 21% less carbon dioxide into the atmosphere during its manufacturing process. Both `Milsani's` EcoPlus packaging and `GutBio's` Edge Biobased are Forest Stewardship Council (FSC) certified, which ensures that the material used to produce the packaging comes from sustainably managed forests. Click on image for more:

  • Colombia: Private Label brands are present in 94 out of 100 homes

    Discount Retail Chains revitalized the Private Label brands, supermarket chains are betting on this type of product with its lower prices and higher margins. Private Label brands began to grow with the arrival of hard discounters in Colombia. Currently, PL is used by all retailers and department stores and is increasingly taking center stage in Colombian purchases. According to Nielsen, as of May of this year, PL brands have had a growth of 17.3%, while commercial brands grow at a rate of 11.3%. Furthermore, 94% of households are penetrated by PL brands. This indicate that of every $100 that a Colombian spends in retail, $17 goes to a PL brand. Total sales of PL amount to US $ 2.4 billion. However, within the PL brands there are two categories, those for mass consumption (food and beverages) and those that are not for mass consumption (household appliances). The first weighs 87% of total sales and the second 13%, although during quarantine it grew at a rate of 3%. For example, small appliances are on the rise, as are air conditioners. According to Gutiérrez, retailers are betting on 'pre-communizing' their PL brand, giving it an innovative concept through differential functional attributes such as packaging, natural and organic products and that they are competitive with traditional brands. In this sense, the commercial PL brands, those that are not tied to a retail brand, represent 73% of the sales of PL brands. Meanwhile, white (OE) label brands, which do use the mother brand such as Discount Retail Chain Ara, Olímpica or Éxito, make 17% of sales. In terms of formats, 75% of discounters sales are from their own PL brands. It should be remembered that these were the first to bet on PL. In contrast, in supermarket chains only 20% of the Colombian spending is on PL brands. Regarding the consumer profile of PL brands, the high socioeconomic level buy more frequently, at least once a week. The average basket is $ 34. Meanwhile, the frequency of purchases of the mid-level is every eight days with a basked is $ 33. The low level buys every 10 days and spends $ 31. Gutiérrez explained that, thanks to its growth, the segment gains one percentage point of annually. Last year, PL brands weighed 16% and today they are at 17%. In addition, with this year's crisis, consumers will be careful with each peso spent on purchases. Click on image for more:

  • USA: Lidl’s Long Island locations forced competitors to lower prices

    Discount Retail Chain Lidl recent store openings on New York’s Long Island pressured competing grocers in the market to reduce their prices by as much as 15%, a new study from the University of North Carolina Kenan-Flagler Business School has found. Katrijn Gielens, professor of marketing at Chapel Hill, North Carolina-based UNC Kenan-Flagler, led the independent study, which was commissioned by Lidl US. “Given that U.S. households are facing the fastest-rising rise in food prices in a generation and a looming recession, understanding how supermarket competition can keep grocery prices at bay is more important than ever,” she noted. “Lidl’s competitive price-cutting effect is continuing to pressure other retailers to drop their prices. The data shows the effect is greater than Walmart’s entry in a new market reported by previous academic studies.” Lidl’s prices were significantly lower than those of competing Long Island retailers, with its food prices about 45% lower than at specialty retailer Trader Joe’s (owned by Aldi). Additionally, Lidl set prices 39.6% lower than King Kullen and 33.8% lower than Stop & Shop, while at Target and BJ’s, price differences were 18.5% and 10%, respectively. For Costco, Aldi and Walmart, however, no price differences with Lidl were found. Retailers on Long Island lowered their own prices substantially after Lidl opened new stores, compared with their prices before the retailer entered the market. The price-cutting effect was stronger than earlier academic findings regarding Walmart's entry into a new market, at which time price declines typically varied between 1% and 2.5%, or 5% at most. The recent study found that Discount Retail Chain Aldi cut its prices by 15% and Walmart by 9% after Lidl's entry; Stop & Shop and King Kullen dropped their prices an average of 5.3% to 3.8%, respectively; Costco responded to Lidl’s entry by slashing prices by 8.3%; and Target and Trader Joe’s each lowered their prices by 4%. Despite a general trend of a more than 2% increase in grocery prices between April 2019 and March 2020, competing retailers on Long Island set their prices for individual products, including staples, considerably lower after Lidl entered the market. For more expenses items such frozen seafood, laundry detergent and olive oils, prices fell 15%; in staple categories like as pasta, butter and breakfast cereals, prices dropped more than 10% to 15%; and for some frequently purchased items, among them refrigerated drinks, peanut butter and frozen pizza, prices declined by 10%. The results of a study Gielens conducted in 2018, showed that Lidl put significant pressure on top retailers to reduce their prices prices soon after it first opened stores. Three years after its U.S. entry, Lidl’s competitive price-cutting effect has proved to be lasting and more than offsets the trend of increasing grocery prices. Click on image for more:

  • Poland: most trust in Discount Retailers Biedronka and Lidl during pandemic

    Discount Retail Chains Biedronka (14.3%) and Lidl (12.5%) have the highest confidence for Poles in the COVID-19 pandemic. This is the result of the report "Poles' trust in retail chains during a pandemic", conducted by Catchers agency and IPC Research Institute. Click on image for more:

  • Hong Kong: Japanese megastore Don Don Donki opens its third store

    Discount Retail Chain Don Don Donki (owned by PPIH) opened its third one-stop shop Japanese megastore at Causeway Bay. Following the opening of the two Don Don Donki stores in Tsim Sha Tsui and Tsuen Wan, the new store opened on Paterson Street on Hong Kong island. The new almost 15,000m2 store spans four floors of shopping mall Pearl City. Similar to its other branches, the Causeway Bay Donki will have a massive selection of everything from Japanese groceries to cosmetic products to electronic appliances. Click on image for more:

  • UK: Tesco is putting pressure on suppliers to compete with Discount Retail Chains

    Tesco (also owner of Discount Retail Chain Jack's) has demanded “offensive” purchasing price discounts from its suppliers in a move expected to spark a price war. Britain’s market leading grocer has given its suppliers until Friday to accept discounts of up to 50%, which will be partly funded by scrapping promotions. Tesco has pledged to match the Discount Retail Chain Aldi prices on 500 products after gaining market share from the discounter for the first time in a decade during lockdown. Discount Retail Chains Aldi and rival Lidl are likely to cut prices further. Tesco's tough attitude partly reflects the need to avoid its previous mistake, when reluctance to lower its prices was at the advantage of Aldi and Lidl. Click on image for more:

  • Nigeria: Discounter JARA explained

    Discount Retail Chain JARA, the first discount retail chain in Nigeria, explained by founding CEO and Discount Retail Consulting GmbH Executive Parter, William Snollaerts. Starting from an one-man greenfield discount chain investment idea to a fully operating business with already several stores in Lagos and Benin. Well accepted, successful and expanding agressively. Click on image for more:

  • Global: Oxfam grocery retail check 2020; Dealing with human rights

    Discount Retail Chains #Lidl, #Aldi South / North and Rewe (owner of discounter #Penny) have improved compared to previous years. #NGO #Oxfam has assessed the business policies of 16 supermarkets and discounters from different countries in relation to their handling of human rights. Grocery retailers in #Germany, #UK, #USA and the #Netherlands were analyzed with regard to the topics of transparency, workers' rights, dealing with small farmers and women's rights. According to the report, the pricing policy in the markets ensures that, for example, harvest workers still receive starvation wages. Lidl, the best German retailer in the ranking, is in fourth place because, according to Oxfam, the company now publishes a large part of its direct suppliers. In the third year of the grocery retailer check, Lidl thus increased from 9% to 32% of the total number of points. Aldi South and Rewe came in sixth and seventh with 25% each, Aldi North in tenth (18%). Click on image for more:

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